IB Net Payout Yields Model

American Airlines: Beaten To A Pulp

American Airlines has been beaten down this last year as investors incorrectly focus on net debt levels.
Reduced capital expenditures and pension payments will free up around $3 billion in additional cash flows.
The stock trades at half the P/S multiple of Delta Air Lines.
The airline is in the middle of a $4.2 billion initiative to improve revenues and lower costs.
The amazing decline in American Airlines Group (AAL) has left the stock at such a discount to the sector that a major Wall Street analyst actually called the stock undervalued due to the simple P/S multiple. The airline has a lot more going on to support owning the stock, but an easy bull case always helps.
Read the full article on Seeking Alpha. 

Disclosure: Long AAL, UAL. Please review the disclaimer page for more details. 


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